1. 4-Credit Cooperatives-
1.1. Traditional S&Ls
1.1.1. 1-take deposits from small customers and use the deposit to make loans to borrowers 2-the difference between the deposit rate and the lending rate constitutes a profit for the institution.
1.2. Several S&Ls in the United States
1.2.1. 1-ran into financial difficulties because they used the deposits (mostly short-term in nature) to make long-term loans with fixed interest rates in the form of mortgages 2-following a rise in interest rates : refinancing the deposits became more expensive (because of the higher interest rates) while interest payments from the fixed mortgage loans remained very low.
2. 5-Savings and Loans Association-
2.1. CU formed
2.1.1. on the basis of associations in which the members have a common affinity
2.1.1.1. Members
2.1.1.1.1. could be teachers and nurses or residents of a particular district or region in a country
2.1.1.2. Membership
2.1.1.2.1. is not open to the public and there is membership fee
2.2. Savings (Deposit)
2.2.1. made by the members are used to make loans with reasonably low interest rates to only members of the union and offer higher rates on deposits, there is patronage refund.
3. 6-Brokerage Firms-
3.1. intermediary
3.1.1. between buyers and sellers to facilitate securities transactions
3.2. Brokers
3.2.1. are compensated via commission after the transaction has been successfully completed
3.3. Ex: When a trade order for a stock is carried out, an individual often pays a transaction fee for the brokerage company's efforts to execute the trade.
4. 1-Insurance Companies
4.1. An arrangement by which one party (an insurer) promises to pay the (insured or policy holder) a sum of money if something happens to the policy holder
4.1.1. Property Insurance
4.1.1.1. Provide protection against damage or loss of individual or business property, like : automobiles (car) and buildings (houses) due to unexpected events such as theft, fire, water damage etc
4.1.2. Casualty insurance
4.1.2.1. protects the policyholder against legal liability for events: harms/injuries caused to third parties because of accidents
5. 2-Investment Banks-
5.1. is a financial intermediary that performs services for businesses and some govt.
5.1.1. 1-Underwriting
5.1.1.1. raise capital from investor on behalf of corporations issuing securities
5.1.2. 2-Making markets
5.1.2.1. member firm of an exchange that buys and sells securities for its own account
5.1.3. 3-Facilitating
5.1.3.1. mergers, reorganizations & acting as broker for institutional clients
5.1.4. 4-Provide
5.1.4.1. research and financial advisory services to companies
6. 3-Investment Companies-
6.1. A corporation or a trust through which individuals invest in diversified, professionally managed portfolios of securities by pooling their funds with those of other investors Here, an investor : can purchase securities indirectly through a package product like a mutual fund
6.1.1. EX 1-Dhofar International Development and Investment Holding Company 2-Oman Investment Authority 3-Takamul Investment Company